Capital Product Partners L.P. announced that it has commenced its previously announced rights offering to raise proceeds of up to $500,000,000. Pursuant to the rights offering, CPLP is distributing to each holder of common units representing limited partnership interests in CPLP (the “Common Units”), for each Common Unit owned of record as of 5:00 p.m., New York City time, on November 24, 2023 (the “Record Date”), one non-transferable right to purchase 1.758657 Common Units at a subscription price of $14.25 per whole Common Unit (the “Rights Offering”). Fractional Common Units resulting from the exercise of rights will be eliminated by rounding down to the nearest whole Common Unit.

The subscription period for the Rights Offering commences today and will end at 5:00 p.m., New York City time, on December 13, 2023, unless otherwise extended. CPLP has entered into a Standby Purchase Agreement with Capital Maritime & Trading Corp. (“Capital Maritime”)(the “Standby Purchase Agreement”), pursuant to which Capital Maritime has agreed to purchase from CPLP, at $14.25 per Common Unit (which is equal to the subscription price), the number of Common Units offered pursuant to the Rights Offering that are not issued pursuant to the Rights Offering.

The Rights Offering is more fully described and is being made pursuant to CPLP’s effective registration statement on Form F-3 and a prospectus supplement filed with the Securities and Exchange Commission on the date hereof (together with the base prospectus included in the registration statement, the “Prospectus”). Copies of the Prospectus, which contains further details regarding the Rights Offering, and related Rights Offering materials, will be provided to all holders of Common Units as of the Record Date.

We are conducting the Rights Offering pursuant to the terms of an umbrella agreement, which we entered into on November 13, 2023 with Capital Maritime and Capital GP L.L.C. (the “Umbrella Agreement”). The proceeds from the Rights Offering will be used to finance a portion of the purchase price for 11 liquefied natural gas carrier (LNG/C) vessels that we have agreed to purchase from Capital Maritime pursuant to the Umbrella Agreement.

Neither CPLP’s board of directors nor the board’s Conflicts Committee is making any recommendation as to whether or not holders of Common Units should exercise their rights. Holders are urged to make their own decision whether or not to exercise their rights based on their own assessment of CPLP business and the Rights Offering. Holders of Common Units should read carefully the Prospectus and all other information incorporated therein in their entirety before investing.

CPLP has engaged Computershare Trust Company, N.A. and Computershare Inc. to serve as the subscription agent, and Georgeson LLC to serve as the information agent for the Rights Offering. Any questions or requests for assistance concerning the method of subscribing for the Common Units or for additional copies of the Prospectus should be directed to Georgeson LLC, at: +1 (888) 275-5885.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the rights, Common Units or any other securities, nor will there be any sale of the rights, Common Units or any other securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
Source: Capital Product Partners